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The difference between a monopolistically competitive firm and a perfectly competitive firm is that the monopolistically competitive firm can earn positive economic profits in the
The difference between a monopolistically competitive firm and a perfectly competitive firm is that the monopolistically competitive firm can earn positive economic profits in the long run due to barriers to entry, while the perfectly competitive firm earns zero economic profits in the long run.
Is this statement true? Why or why not? Explain your answer and illustrate your answer on the graphs given below.
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